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by: Marlee Lehner


Marlee Lehner

GPA 3.68


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Class Notes
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This 10 page Class Notes was uploaded by Marlee Lehner on Monday October 5, 2015. The Class Notes belongs to RLS 105 at California State University - Sacramento taught by Staff in Fall. Since its upload, it has received 27 views. For similar materials see /class/218849/rls-105-california-state-university-sacramento in Recreation and Leisure Studies at California State University - Sacramento.

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Date Created: 10/05/15
California State University Sacramento College of Business Administration GM105 STRATEGIC MANAGEMENT 2009 PROFESSOR HAN ASSIGNMENTS AND CASE DISCUSSION OUTLINE Case WALMART STORES INC Discussion Questions 1 Identify WalMart s strategy and explain how and why has it enabled Wal Mart to be so successful in an aggressively rivalrous industry What historically has been WalMart s kg source of competitive advantage in discount retailing How has WalMart operated differently from its rivals How do you explain WalMart s extraordinary performance in discount retailing Is a favorable industry structure the reason What was Sam Walton s profound insight that leads to WalMart s success Can you break down WalMart s competitive advantage in discount retailing Be speci c Using the information in the Tables and text of the case quantitatively estimate the extent of WalMart s competitive advantage in discount retailing For example estimate the differences between WalMart and its competitors costs of advertising logistics shrinkage COGS etc Estimate the magnitude of WalMart s cost advantages in terms of increased margin operating pro t or lower operating costs and expenses Be as speci c as possible How sustainable is WalMart s competitive advantage in discount retailing in 1986 Where is WalMart s advantage most sustainable What are the bases of sustainability Why can39t competitors match what WalMart does 5 What is the biggest threat to WalMart s continued success Are supercenters the answer to the threats identi ed Will WalMart be superseded by another retailing concept 6 Draw a diagram that highlights all of WalMart s major activities Link together any and all activities that support or complement other activities within WalMart Ifyou do this in a comprehensive way you should be able to identify the nature and sources of WalMart s main competitive advantages and appreciate how and why WalMart is such a dif cult competitor to compete with N W 3 W U 5 Quantitative AssignmentQA Provide an explanation for why and by how much WalMart has been able to outperform its rivals Lrst quantify WalMart s competitive advantages by computing the differences or variances between WalMart s operating performance revenues and expenses and that of its direct competitors Exhibit 6 should be your starting point Be sure to incorporate any additional information in the case to further breakdown costs of goods sold inbound logistics shrinkage etc and operating expenses advertising information systems etc You will need an explanation of why Wa1Mart s cost of goods sold is higher than the industry average Second offer an explanation as to the sources of these differences Pay particular attention to explaining why Wa1Mart s rivals have not been able to imitate them and hence negate their performance advantage A detailedannotated spreadsheet and an attached executive brief should be su icient as a write up Aimfar quality andbrevity 7 not quantity Case APPLE COMPUTER 2002 Discussion Questions 1 Historically what were Apple s major competitive advantages 2 Analyze the structure of the personal computer industry over the last 10 years How have the dynamics of the PC industry changed 3 Evaluate Apple s strategies since 1990 4 What should Steve Jobs do today Short AssignmentSA Evaluate Apple s response to changes in the industry since 1990 Are they appropriate and sufficient to ensure Apple s longterm success Discuss both positive and negative aspects of the response What are Apple s competencies on which they can build a future competitive strategy It is recommended that you answer the questions What business are they in and Who are their competitors when you outline your position Cases COCACOLA VS PEPSICOLA AND THE SOFT DRINK INDUSTRY Discussion Questions 1 Why has the soft drink industry been so pro table Why has the soft drink industry evolved with a franchise bottler system What is the underlying economic logic of bottling Why have concentrate producers nurtured and preserved the bottling system How does the bottling franchise system effect industry pro t rates Why has being a concentrate producer been such a gold mine Some call it a quotlicense to stealquot Why no signi cant entry of new producers What are the driving competitive economics of the Soft Drink industry 2 What is happening in the soft drink industry How do the major developments affect smaller competitors 3 Evaluate the Philip Morris acquisition of SevenUp Why was SevenUp successful prior to its acquisition by Philip Morris Why did Philip Morris buy SevenUp Why did the SevenUp acquisition by Philip Morris not succeed What should Philip Morris do now Short AssignmentSA Prepare a detailed ve competitive force Porter Model analysis of the Soft Drink industry Be sure to separate the concentrate producers and the bottlers in your analysis Remember that the Bottlers are buyers from the Concentrate producer s perspective and the concentrate producers are suppliers from the bottler s perspective You should at a minimum have two ve force diagrams one for the concentrate producers and the other for the bottlers Be sure to thoroughly identify and describe the major entry and mobility barriers in each part of the industry what factors most in uence the rivalry among concentrate producers and bottlers how important substitutes are for each segment and what protection the industry players have from major suppliers and buyers Case Discussion Questions 1 2 3 4 5 Short AssignmentSA POWER PLAY NINTENDO N 8BIT VIDEO GAMES What steps did Nintendo take to make Video games attractive to consumers What was the key difference between the Nintendo and Atari strategies What was Nintendo s strategy toward its suppliers What was Nintendo s strategy towards software producers What was Nintendo s strategy towards direct competitors Nintendo successfully recreated the home Video game business following the Atari era boom and bust How did it do so Use the ve forces model and other appropriate theories to present your argument Case THE READYTOEAT BREAKFAST CEREAL INDUSTRY IN 1994 Discussion Questions 1 Why has the RTE cereal industry historically been such a profitable business What are the barriers to entry in the RTE cereal industry 2 What changes have led to the current industry crisis What issues do the Big Three face in 1994 2 Why have private labels been able to enter this industry successfully How do the cost structures of private label and branded cereal manufacturers differ 3 What does General Mills hope to accomplish with its April 1994 reduction of trade promotions and prices 4 What are the risks associated with these actions How do you expect General Mills competitors to respond 5 What should General Mills do What should be done about escalating rivalry What should be done about private label entry Quantitative AssignmentQA Compare and contrast the cost structures between the branded cereal manufacturers and the private label cereal makers You can by using the cost structure information provided in Exhibit 2 and in the case text compare the industry value chains of both types of cereal makers Assume that marketing costs are zero or close to it for the private label cereal makers Pay special attention to determining how the industry value chains are different for each type of breakfast cereal manufacturer Explain how the private label cereal manufacturers have been able to lower their cost structure relative to the branded cereal manufacturers Will the private label cereal makers be able to withstand a price war with the branded cereal manufacturers A well labeled comparative diagram comparing costs for each activity plus value chains for each cereal type and an executive brief should be a suf cient writeup Case DE BEERS CONSOLIDATED MINES LTD Discussion Questions 1 How did Cecil Rhodes originally acquire the Inining claims for DeBeers Mining Co Did supplier power play a role in this process 2 How has De Beers attempted to manage the supply of diamonds over time 3 How has De Beers attempted to affect the demand for diamonds over time 4 What is De Beers pricing policy Why does it follow this policy 5 Does De Beers CSO exercise bargaining power over buyers If so how 6 Why did Harry Oppenheimer say that speculation is problematic for De Beers even though it caused increases in diamond prices Short AssignmentSA What elements of the value chain would you recommend that De Beers continue to emphasize in its quest for monopoly pro ts In which aspects of the diamond mining and distribution value chain do you believe that De Beers will face increasing competition List each element of the value chain and evaluate the opportunities and dif culties of maintaining monopoly pro ts for each element Conclude with your recommendation Case Discussion Questions Short INTEL CORPORATION 19682003 1 What was Intel s strategy in DRAM s What accounts for Intel s dramatic decline in market share in the DRAM market between 1974 and 1984 To what extent was Intel s failure a result of its strategy N What strategy did Intel use to gain a competitive advantage in microprocessors What threats has Intel faced in sustaining its competitive advantage in microprocessors and what strategies has it used to deal with each Why has Intel been able to sustain its advantage in microprocessors but not in DRAM s W Assess the future prospects of Intel What is the biggest threat it faces in the Internet era Whom should it be most worried about Put yourself in the position of Intel senior management and craft a strategy to deal with these threats Assignment SA What has been the logic underlying Intel s product diversi cation strategy What are the greatest threats to Intel s competitive advantage that confront them today For each threat you identify discuss 1 why it is a threat 2 the relationship to Intel ie rival supplier etc and 3 what you recommend Intel to do to respond to each threat Case NUCLEON INC Discussion Questions 1 What are your recommendations regarding the manufacturing of CRPl for Phase I and Phase II clinical trials What are your recommendations regarding manufacturing for Phase III clinical trials and commercialization 2 How would you justify your recommendations to wouldbe investors in the company 3 What is your recommendation regarding Nucleon s longterm manufacturing strategy What should this company look like in 10 years e g an RampD boutique an RampD boutique with pilot scale manufacturing capabilities or an integrated manufacturing enterprise Quantitative AssignmentQA Determine the net present value of the following ve options through the year 2009 Use a discount rate of 30 and show what numbers you used and how you did the NPV calculation DO NOT IU ST WRITE DOWN FIVE NUMBERS Phase III Production Phase III Production a Nucleon Nucleon b Nucleon Licensee c Contractor Nucleon d Contractor Licensee e Licensee Licensee Compare options a through e using two criteria 1 Which option has the highest NPV 2 Identify what Nucleon s competitive advantages would be if it chooses each of the ve options for example if Nucleon chooses Option e then manufacturing capabilities are unlikely to be part of Nucleon s competitive advantage Also comment on the ability of Nucleon to sustain the advantage implied with each of the ve options Based on your analysis of NPV and competitive advantage which option do you recommend Your assignment should include a onepage spreadsheet showing the NPV calculations and a writeup NOTE 1 There is an error in Exhibit 5 on page 15 In the sentence After the year 2000 sales of CRP l 2000 should be changed to 2002 2 Exhibit 6 which contains Good Manufacturing Practices GMPs is missing from the case However this Exhibit does not contain any critical information for your understanding of the case Case Discussion Questions 1 2 3 4 5 Short AssignmentSA SHANGHAI VOLKSWAGEN FACING A NEW ERA What were the objectives of Volkswagen in setting up SVW in China What were the objectives on the part of the Chinese to form this joint venture Should China develop an auto industry Why was SAIC interested in localizing all the components Could SVW protect its pro t margin once China joined WTO Identify the objectives of Volkswagen and its Chinese partner in setting up SVW in China Have both parties achieved their goals Evaluate the future of SVW after China joined WTO


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